Cell Mates

We all love our phones, but this wireless world is changing fast-here's the 411.

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Today's cell phones do much more than just make and take calls. They snap photos; play games and music; download software; hook up to a laptop; surf the web; and send e-mail, multimedia, and instant messages.

Not enough bells and whistles to woo you to a new model? Just wait. New processors by the world's two largest wireless phone chip companies, Texas Instruments (TI) and Intel, will enable phones available by year-end to do all that—and more. Plus, these dynamos will enable phones to shrink to the size of a box of Tic Tacs.

It's a Buyer's Market
Customer turnover is high: According to Jupiter Research, companies lose 2.5 percent of their customers every month. That number is expected to rise in November, when we'll be able to keep our phone numbers even if we sign on with another company. The end result? Companies are outdoing each other to offer better service and snazzy extras.

Virtually every service provider has contracted, or is in negotiation, with phone manufacturers to accommodate new functions and special equipment such as cameras. Want your entire Microsoft Outlook address book on your phone so you can voice-dial anyone, anytime? Done. Tired of looking at that boring two-line display? Most new models have screens in the 1-by-21/2-inch range, some with 64,000 colors and more options than a small handheld computer. Actually, some of them are handheld computers. PocketPC and PalmOS-style hybrids have become common phenomena.

Slim and stylish phones are all the rage, with models shrinking even as their capabilities grow. For a hint of where the market's headed, look to Europe, where makers such as Siemens are turning out teardrop-shaped phones that hang on a cord around your neck. Phones are also getting ultracustomized. If all you want is a game machine that lets you make calls and play others head-to-head, you've got it in the new Nokia N-Gage. If you're out to get a handheld computer with a versatile minikeyboard, wireless phone service, and color screen, opt for Palm's new Tungsten W or an established winner such as Handspring's Tre-o 300.

New Developments
Keep an eye out for phones with two new chips debuting this fall. Texas Instruments' new Omap line uses less juice and offers more processing power, speedier graphics, and a tiny size. Intel is hot on TI's heels with the new PXA800F, a clumsy acronym for a very smart brain that builds the phone's communications, memory, and processing functions into a single chip. The result? Faster, smarter, cheaper phones that can do everything today's models can at a third of the size and a quarter of the price.

What to Expect
The next wave of phones will be even more specialized. If you want voice and nothing but, you'll enjoy a longer battery life and models small enough to be built right into earsets. The bottom line? Shop for service first: Specific phones depend on the carrier you choose. And plan on trading your phone in after a year or two. Most services offer updates on new equipment, and the technology is moving way too fast to stick with one phone for long. How appropriate for a mobile device.

Calling all Fashionistas
Sure, you need to phone home. So why not look cool while doing it? Go for funky colors, such as the blue Nokia 3650, right, which features an integrated camera. Or consider phones with MP3 playback, faceplates that snap on and off, configurable lights, and screen savers. Your carrier's website will list a lot, as will aftermarket sites such as wirelessemporium.com. The hippest accessory on the street now? Wireless earphones. We like Premiere Wireless's sleek Tech pwh3100 headset, $150; visit premierewirelessheadset.com.

Don't get Scammed
Avoid the biggest traps in your wireless plan. Here are five things to consider:

1. Data minutes and megabytes versus voice calls
If you're buying a fancy phone—say, for a camera or Internet connection—some plans charge by the minute, while others charge by the megabyte. Photos may cost only minutes to upload but can use up your precious data allotment if you e-mail them over the phone to friends.

2. Directory assistance
The biggest hidden cost! Ask about the charges, and try to build free calls into your plan.

3. Add-on fees
Piling extra services on a basic contract may be more expensive than buying a bigger bucket of minutes with more extras up front. Ask what's out there; you might find services such as Verizon's Voice Gear (voice dialing of anyone in your computer's address book) worth an extra fee if you can't get it built into a package.

4. Roaming and long distance
Most plans come with some combination of the two, but read the fine print. Long-distance calls and data transfers will cost you more while you're roaming out of your service area.

5. What's new
Call your company every six months to see what options you can snag—for instance, more minutes or features added to your plan for free.